Thousands of the highest-paid bankers in the City look likely to cling on to their anonymity as the government prepares to back down from its suggestion that banks should name their top 20 earners.

Had the proposal, floated by City minister Lord Myners, been adopted, it would have forced major banks to identify star traders who do not currently have to disclose their rewards so long as they remain outside the boardroom.

Myners had suggested that further disclosure about bankers' pay was needed after looking at practice in the US, where the five best-paid staff must be identified even if they are not board directors. His idea for a roll-call of the top 20 highest earners goes even further than the American measure and could have forced banks to reveal the pay and identities of elite traders and executives who earn more than their boardroom bosses.

But it is thought the government has concluded such measures might appear too vindictive and would add less to the information shareholders require to police bankers' pay than the proposals being drawn up by Sir David Walker. The government-commissioned report by the City grandee into boardroom behaviour at banks is due at the end of the week, and Westminster has left open the possibility that his proposals could be extended to other companies outside the financial sector.

Walker was commissioned by the chancellor, Alistair Darling, to look for ways to strengthen boardrooms and encourage shareholders to be more engaged in bank governance to avoid another re-run of the banking crisis, in which chief executives of major players such as RBS's Sir Fred Goodwin appeared to be beyond the control of directors and investors.

Because of regulations in Hong Kong, HSBC already provides more information on pay than other UK banks by being forced to list its top earners – without naming them – by pay band. In his interim report in July, Walker suggested that pay levels should be disclosed in bands and that the number of staff falling in each band be included.

Last week Walker made it clear he was pressing on with his new disclosure regime by writing to Alistair Darling to ask him to leave open the door for legislation on the parts of his report related to pay. While Walker believes that many of his 39 proposals can be adopted through voluntary regimes, such as the City's combined code on corporate governance, he is concerned that many banks would be able to avoid complying with his recommendations on pay.

The City code only applies to stock-market-listed companies and as many of the biggest payers in the City are not listed in London, they would be under no obligation to adopt the pay recommendations.

Walker has received more than 150 submissions since his interim report, which is at the heart of the government's response to the banking crisis. The crisis has also led to the creation of codes on pay by the Financial Services Authority and the G20.

Last week's Queen's speech contained proposed legislation giving the FSA formal powers over pay and the right to void new contracts drawn up for bankers that encourage them to take too much risk. Crucially, however, neither the government nor the FSA is able to alter contracts that are already in place.